The bill H. 4216 proposes significant changes to South Carolina's income tax structure. It aims to amend Section 12-6-510 to establish a flat income tax rate of 3.99% for individuals, estates, and trusts starting from tax years after 2025. Additionally, it introduces provisions for further reductions in the tax rate based on revenue growth, with a goal of potentially lowering the rate to 2.49%. The bill also amends Section 12-6-50 to exclude the federal standard deduction and itemized deductions from state adoption, while Section 12-6-1140 introduces a South Carolina Income Adjusted Deduction (SCIAD) with varying amounts based on filing status.

Further amendments include changes to Section 12-6-4910, which outlines the requirements for filing a tax return, and Section 12-6-1720, which adjusts the taxable income for nonresident individuals. The bill mandates that the Department of Revenue adjust withholding tables to align with these changes and specifies that the act will take effect upon the Governor's approval, applying to tax years beginning after 2025. Overall, the bill aims to simplify the tax code while providing potential tax relief to South Carolinians.

Statutes affected:
03/25/2025: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
03/27/2025: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
04/02/2025: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
04/30/2025: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
05/06/2025: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
05/07/2025: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
05/07/2025-A: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720
Latest Version: 12-6-510, 12-6-50, 12-6-1140, 12-6-4910, 12-6-1720